Cango Newsletter 20210928
The 2021 World Internet Conference Wuzhen Summit was grandly opened. Bao Fan, the founder and CEO of Huaxing Capital Group, shared his views on economic digitization and intelligence. In the next decade, China’s intelligence wave will mainly focus on the smart consumption field that reshapes the relationship between consumers, goods, and venues; the smart industry field that changes the energy structure; the smart health field that is more precise and personalized treatment and meets contemporary needs; and the intelligent technology fields that enable new impetus for economic development to meet the increased demand of various departments of enterprises.Official launch of Southbound Trading under Bond Connect
On September 24, the Southbound Trading under mutual bond market access between Hong Kong and Mainland China (Southbound Bond Connect) is officially launched. There is a gap in the development of Hong Kong's IFC bond market compared to the Mainland as bond custody in Hong Kong totaled US$308.85 billion while bond custody in Mainland China totaled 104.32 trillion yuan ($16.04 trillion). The scheme aims to provide a convenient, efficient and secure channel for Mainland institutional investors to invest in offshore bonds through the Hong Kong bond market and to attract companies from round the region to raise financing in Hong Kong. While meeting the demand of the Mainland market, it will also give new momentum to the development of Hong Kong's bond market.2021 China's top 500 enterprises list unveiled; patent quality of Chinese enterprises improved constantly
The total operating income and net profit achieved RMB 89.83 trillion and RMB 4.07 trillion, with a year-on-year increase 4.43% and 4.59% respectively. The R&D intensity was 1.77% recorded a new historic high. The threshold for entry into the Top 500 this year is 39.2 billion, and the number of enterprises in the 100 billion club has increased to 222. It is expected that the list of trillion-dollar enterprises may exceed 10 for the first time next year. However, the operating revenue of the World Top 500 declined by 4.81% in the same period./span>
As of the end of 2020, total new energy vehicle production capacity was 26.69 million vehicles per year in China, and the cumulative sales of new energy vehicles in the same year were 1.367 million vehicles. The calculated capacity utilization rate of the new energy automobile industry is only 5.1%, and the spare capacity exceeds 25 million vehicles. At the press conference of the State Council Information Office, Ministry of Industry and Information Technology Minister Xiao Yaqing said that it is necessary to give full play to the role of the market and encourage enterprise’s mergers and acquisitions to become bigger and stronger, and further increase industrial concentration.NEVs enjoyed high speed growth yearly, expected to occupy 20% of the market share in advance
The country produced 1.81 million NEVs in January-August, up 190% from a year earlier, with sales up by 190% to 1.80 million over the same period. The penetration reached 11%. Total NEV output in August rose to 0.31 million, up by 180%, with sales also moving up by 180% to 0.32 million units. The NEV penetration in August increased to 17.8% while the penetration of new energy passenger vehicle topped 20%.The Chengdu Motor Show 2021 concluded with more than 37 thousand orders
The Chengdu Motor Show 2021 (CDMS 2021) was successfully concluded. It attracted 126 famous auto brands, all together more than 1,600 vehicles to the show, including the debuts of 23 models for the first time. Statistics reveal that orders for 37,730 vehicles were placed at CDMS 2021, with a turnover of 6.516 billion yuan. CDMS 2021 witnessed an increase of 14 new NEV brands, or 280% up against the last year, creating a new record.
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